Exam 3: Processing Accounting Information

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account. -Income Taxes Payable

The principle says that, with a few exceptions, assets are not carried at market values, but at their original cost.

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Bonds Payable

A credit means that:

A trial balance is aan:

An entry made to the right side of an account is called a:

During May, Aniston, Inc. purchased office supplies for cash. The supplies will be used in June. What effect does this purchase transaction have on the accounting equation?

Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit. -Wages and Salaries Expense

The Holmes Company purchased a building for $75,000 in cash. What is the effect on current assets?

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company hires a new secretary.

Prepare the journal entry to record each of the following independent transactions. Use the number of the transaction in place of a date for identification purposes. 1. Services provided for cash of $7,050. 2. Purchase of equipment for cash of $2,240. 3. Services provided on account of $530. 4. Purchases of supplies on account for $365.

Debit and credit would best be described as terms.

A trial balance is the listing of each account and its balance at a specific point in time.

A trial balance is a financial statement.

Double-entry accounting is best characterized as:

Wolfe Inc. Wolfe Inc. reports these account balances at January 1, 2015: -See the account balances for Wolfe Inc. On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable. In Wolfe's Trial balance prepared on January 31, 2015, the total of the credit column is:

Refer to the Terry Company transactions.Required: Indicate the economic effects of each transaction above on the accounting equation. Use the following format for your answers. Show the dollar amounts in the appropriate columns and use a "+" plus sign to indicate an increase and a "-" minus sign to indicate a decrease.

Identify which of the following would be recorded as external events, recorded as internal events, or not recorded. -The company takes a count of the raw materials inventory and finds that an adjustment is needed.

The purchase of office equipment on credit has what effect on the accounting equation?

The general ledger is sometimes called the book of original entry because it is the accounting record where transactions are first recorded.